[Federal Register: December 22, 1999 (Volume 64, Number 245)]
[Rules and Regulations]
[Page 71917-71926]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22de99-26]
[[Page 71917]]
_______________________________________________________________________
Part IV
Department of the Treasury
_______________________________________________________________________
Bureau of Alcohol, Tobacco and Firearms
_______________________________________________________________________
27 CFR Part 200, et al.
Implementation of Public Law 105-33, Section 9302, Relating to Tobacco
Importation Restrictions, Markings, Minimum Manufacturing Requirements,
and Penalty Provisions, etc.; Final and Proposed Rules
[[Page 71918]]
DEPARTMENT OF THE TREASURY
Bureau of Alcohol, Tobacco and Firearms
27 CFR Parts 200, 270, 275 and 290
[T.D. ATF-421]
RIN 1512-AB99
Implementation of Public Law 105-33, Section 9302, Relating to
Tobacco Importation Restrictions, Markings, Minimum Manufacturing
Requirements, and Penalty Provisions (98R-369P)
AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of
the Treasury.
ACTION: Temporary rule (Treasury decision).
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SUMMARY: This temporary rule implements several provisions of the
Balanced Budget Act of 1997. Section 9302 of the new law: places
restrictions on the importation of previously exported tobacco
products, requires markings on tobacco products or cigarette papers and
tubes removed or transferred without payment of the federal excise tax,
provides penalties for selling, relanding, or receiving, within the
jurisdiction of the United States, tobacco products or cigarette papers
and tubes which have been labeled and shipped for exportation and were
removed after the effective date, and authorizes the Secretary to
prescribe minimum capacity or activity requirements as a criteria for
issuance of a manufacturer's permit.
The temporary rule implements these changes in law by providing new
and amended regulations in parts 200, 270, 275 and 290 of title 27 of
the Code of Federal Regulations (CFR). Additionally, the Bureau of
Alcohol, Tobacco and Firearms (ATF) has made several other clarifying
changes to the tobacco regulations. This temporary rule will remain in
effect until superseded by final regulations.
In the Proposed Rules section of this Federal Register, ATF is also
issuing a notice of proposed rulemaking that invites comments on this
temporary rule for a 60-day period following the publication of this
temporary rule.
DATES: These temporary regulations are effective January 1, 2000.
FOR FURTHER INFORMATION CONTACT: Ms. Teri Byers or Mr. Daniel Hiland,
Regulations Division, 650 Massachusetts Avenue, NW, Washington, DC
20226; Telephone (202) 927-8210, or alcohol/
tobacco@atf.gov.
SUPPLEMENTARY INFORMATION:
Background
This temporary rule implements several provisions in section 9302
of the Balanced Budget Act of 1997 (Act), Pub. L. 105-33, 111 Stat.
672. Section 9302 amends the Internal Revenue Code of 1986 (IRC) at
sections 5704(b), 5712, 5754 and 5761(c). These new provisions relate
to tobacco products, cigarette papers and tubes importation
restrictions, markings, minimum manufacturing requirements and penalty
provisions concerning tobacco products, and cigarette papers and tubes.
Congress amended the IRC so that the Secretary of the Treasury can
more effectively enforce the collection of Federal excise taxes on such
products. These provisions protect the Federal excise tax revenues
derived from tobacco products, and cigarette papers and tubes. The
Joint Committee on Taxation's ``General Explanation of Tax Legislation
Enacted in 1997'' stated that the purpose of the amendments was to
impose ``expanded compliance measures designed to prevent the diversion
of non-taxpaid tobacco products nominally destined for export to use
within the United States.'' As the delegate of the Secretary of the
Treasury (See Treasury Department Order 120-01 (formerly 221), dated
June 6, 1972) ATF is implementing these new provisions by regulation.
Marks, Labels and Notices
Current Law
The Federal excise tax on tobacco products, and cigarette papers
and tubes is due on their removal from bonded premises. See 26 U.S.C.
5703. There are several exemptions from the Federal excise tax, under
section 5704. Section 5704(b) allows a manufacturer of tobacco
products, cigarette papers or tubes, or an export warehouse proprietor
to transfer tobacco products and cigarette papers and tubes, without
payment of tax to the bonded premises of another manufacturer or export
warehouse proprietor. As defined in section 5702, a manufacturer of
tobacco products means any person who manufactures cigars, cigarettes,
smokeless tobacco, or pipe tobacco. This term does not include a person
who produces such products solely for the person's own consumption or
use, or a proprietor of a customs bonded warehouse. A manufacturer of
cigarette papers and tubes means a person who makes up cigarette paper
and tubes, except for personal consumption. 26 U.S.C. 5702(h). An
export warehouse proprietor means one who operates an export warehouse,
which is a bonded internal revenue warehouse for the storage of tobacco
products, and cigarette papers and tubes. See 26 U.S.C. 5702(i), (j).
Section 5704(b) also allows a manufacturer of tobacco products, and
cigarette papers and tubes, or an export warehouse proprietor to remove
tobacco products, and cigarette papers and tubes for shipment to a
foreign country, Puerto Rico, the Virgin Islands or a possession of the
United States, or for consumption beyond the jurisdiction of the
internal revenue laws of the United States. In addition, manufacturers
may remove such articles for use of the United States without payment
of the excise tax. Current ATF regulations which implement these
provisions are located in 27 CFR part 290.
Furthermore, under 26 U.S.C. 5723(b), ATF is authorized to require
certain marks, labels and notices on every package of tobacco products
or cigarette papers. Based on this authority, for those products that
are intended for export, 27 CFR 290.185 requires that every package of
tobacco product that is deemed for export be marked with the words
``Tax-exempt. For use outside U.S.'' or the words, ``U.S. Tax-exempt.
For use outside U.S.'' or a stamp, sticker or notice required by a
foreign country or a possession of the United States, which identifies
such country or possession. In addition, where taxpaid tobacco products
are to be exported and a drawback of the tax paid to the manufacturer,
27 CFR 290.222 requires these packages to be marked with the words,
``For Export with Drawback of Tax''. These regulations serve two
purposes. They enable us to clearly and easily identify packages of
tobacco product that have been removed tax-free under section 5704(b)
or subject to drawback under section 5706. In addition, the export
marking requirement helps us to determine which tobacco products are
intended for export. The regulations are a valuable enforcement
mechanism that helps to prevent jeopardy of the revenue, because we can
easily determine which products have been exempt from taxation and
intended for export. When we identify a package of tobacco product in
the U.S. market with tax-exempt export markings, we become concerned as
to whether it has been Federally taxpaid.
New Law
Congress specifically requires, under section 9302(h)(1)(A) of the
Act, that tobacco products, and cigarette papers and tubes may not be
transferred or removed under 26 U.S.C. 5704(b) unless they bear the
proper marks, labels and
[[Page 71919]]
notices as required by the Secretary of the Treasury. Thus, the
Secretary of the Treasury is authorized to prescribe the type of marks,
labels and notices required on products that are exempt from taxation
under 26 U.S.C. 5704(b). Congress wanted to specifically authorize ATF
to determine, for products exempt from taxation under section 5704(b),
required marks, labels and notices to ensure protection of the Federal
excise tax revenue. Congress wanted to ensure that non-taxpaid products
intended for exportation bear the proper markings. Congress also wanted
to require that taxpaid products that are ultimately sold on the
domestic market must not bear exportation markings. Allowing products
with export markings on the domestic U.S. market would hinder ATF
enforcement of lawfully due taxes, and cause confusion as to whether
the product has been taxpaid.
Thus, based on this authority, ATF has amended three sections of
the regulations. We are now requiring that tobacco products, and
cigarette papers and tubes bear the required marks, labels and notices
in order to qualify for transfer or removal of the product without
payment of tax. Accordingly, we have amended 27 CFR 270.233, 290.61 and
290.181. Thus, under amended Sec. 270.233, tobacco products may not be
transferred in bond unless they bear all required marks, labels and
notices. In addition, under amended Sec. 290.61, tobacco products, and
cigarette papers and tubes may not be removed for exportation without
payment of tax unless they bear all required marks, labels and notices.
We have also amended Sec. 290.181 to require that all tobacco products,
cigarette papers and tubes must, before removal or transfer, bear the
required marks, labels, or notices.
Finally, we have amended Sec. 290.181 to clarify that the
``package'', upon which the marking, labeling and notice requirements
are to appear, does not include any cellophane wrapping material that
may enclose a package. A package, thus, is only intended to include the
actual material that holds and encloses the tobacco products, and
cigarette papers or tubes. This amended definition clarifies placement
of the marking, labeling and notice requirements. In keeping with
Congressional intent to prevent diversion of tobacco products, we
wanted to ensure that markings, labels and notices on products destined
for export are clear and not easily destroyed.
Minimum Manufacturing Activity Requirements
Current Law
Section 5712 currently requires that every person, before
commencing business as a manufacturer of tobacco products or as an
export warehouse proprietor, shall apply for and obtain a permit to
engage in such business. See also 26 U.S.C. 5713. (Effective January 1,
2000 importers will also be required to obtain a permit.) Under current
law, the application may be rejected and the permit denied if, after
notice and opportunity for hearing, we find that: (1) The proposed
premises are not adequate to protect the revenue, (2) the applicant's
business experience, financial standing or trade connections
demonstrates that the applicant is not likely to comply with the law or
(3) the applicant failed to disclose required material information or
made a material false statement on the application. These factors
enable ATF to ensure that those engaged in the business of
manufacturing tobacco products will adequately protect the revenue and
comply with the law and regulations.
New Law
In section 9302 of the Act, Congress amended 26 U.S.C. 5712 by
adding an additional factor for rejecting and denying an application
for a permit. The new law provides that the an application may also be
denied if ``the activity proposed to be carried out at such premises
does not meet such minimum capacity or activity requirements as the
Secretary may prescribe.'' Based on this new language, ATF is
authorized to establish minimum capacity or activity requirements, and
will deny a permit application based on a failure to meet such minimum
capacity or activity requirements. Congress enacted this provision to
ensure that those who apply for a permit actually intend to engage in
the bona fide business of manufacturing tobacco products in a way that
will adequately protect the revenue and comply with the law and
regulations.
In promulgating regulations that establish minimum capacity or
activity requirements, ATF has considered several issues. ATF does not
want to establish criteria that would effectively exclude small tobacco
products manufacturers from obtaining a permit. In addition, ATF wants
to establish criteria that will ensure that only those actually engaged
in the business of manufacturing tobacco products are able to obtain a
permit. Thus, ATF wants to establish criteria that would effectively
exclude any persons who are not legitimate manufacturers and whose
primary interest in obtaining a manufacturer's permit is to obtain the
tax deferral benefits that a permit might facilitate.
Small Manufacturers
Section 5712 requires that prior to engaging in the business of
manufacturing tobacco products, a person must obtain a permit from ATF.
We believe that any manufacturer who proposes to engage in the business
of manufacturing of tobacco products, regardless of size, should be
eligible to receive a permit, so long as they meet the definition of a
manufacturer as defined in section 5702(d) and have fulfilled the other
conditions in the law and regulations. In the past, ATF has issued
permits to some small manufacturers of tobacco products, such as those
who manufacture hand-rolled cigars. Thus, we did not want to establish
minimum capacity or activity criteria that would exclude small tobacco
products manufacturers.
Downstreaming of Taxes
As stated, ATF needs to ensure that only those persons who fit
within the definition of manufacturer at section 5702(d) are eligible
to receive a permit. We would like to ensure that permits are not
issued to persons who intend to use the permit to delay tax payment. In
recent years, ATF has received inquiries from those who would like to
obtain a permit and establish bonded premises for the primary purpose
of receiving tobacco products in bond and delaying payment of Federal
excise taxes.
The Federal excise tax on tobacco products attaches to the products
as soon as they are produced. The manufacturer is liable for the tax on
tobacco products held in bond. The manufacturer actually pays the tax
when the tobacco product is removed from bond. See 26 U.S.C. 5703.
Generally, tobacco products are distributed under a three-tier
distribution system. Once the manufacturer pays Federal excise tax
after removal from bonded premises, the products are transferred to a
wholesaler, which is the second level in the distribution system. The
retailer is the third level in this tier system, and is a customer of
the wholesaler.
As discussed previously, section 5704 provides that tobacco
products may be transferred from a manufacturer or export warehouse
proprietor to another manufacturer or export warehouse proprietor
without payment of tax. Because of this exemption from taxation, a
business could attempt to set up one or more wholesale warehouses
[[Page 71920]]
with some de minimis production capability, and obtain a manufacturer's
permit for each wholesale warehouse. Using the in bond transfer
provision provided by section 5704, each warehouse would then be
eligible to receive tobacco products in bond at each wholesale
warehouse, without payment of the excise tax. The taxes on the product
would not be due until the product was distributed from the wholesale
level to the retail level. This approach is referred to as
``downstreaming of taxes,'' since it moves the collection point for the
excise tax from the production level to the wholesale level. This is
potentially beneficial for manufacturers, since they can effectively
delay taxpayment until the product is removed from essentially the
wholesale level. At the same time, it has an adverse effect on Federal
tax receipts, since it delays payment of the Federal excise tax.
We would like to prevent the downstreaming of taxes. It undermines
the effect and purpose of obtaining a permit to engage in the business
of manufacturing tobacco products. It also contravenes the safeguards
in obtaining a permit: to protect and collect the Federal excise tax
revenue. ATF is also concerned with the potential number of new
taxpayers (i.e., wholesalers qualifying as manufacturers) and the
proliferation of tax payment points, if this approach becomes widely
used. We have found that the collection of excise taxes is best
achieved at the highest level within the distribution chain--the
manufacturer level. Collected at the manufacturer level, we have fewer
taxpayers to monitor, and thus have more efficient tax collections and
fewer administrative costs. By ensuring that tax payment is made at the
true manufacturing level, we can decrease the likelihood that taxable
product will evade proper tax payment.
Recognizing these concerns, ATF wants to ensure that the new
minimum manufacturing criteria would prevent issuance of a permit to
businesses that want to receive tobacco products in bond and delay
Federal excise tax payments. In summary, we have amended the
regulations whereby we will continue to issue permits to small
manufacturers of tobacco products, despite limited production capacity,
and to deny permits to persons who seek a permit for the principal
purposes of receiving in-bond untaxed cigarettes.
Minimum Manufacturing Activity Criteria for Tobacco Products
Manufacturers
Accordingly, ATF has amended the regulations at 27 CFR 270.61, by
requiring that a permit will only be granted to those persons whose
principal business activity under such permit will be the original
manufacture of tobacco products. A permit will not be granted to any
person whose proposed principal activity under such permit will be to
receive or transfer non-taxpaid tobacco products in-bond. Furthermore,
to qualify for a permit, the amount of tobacco products manufactured
under a permit must exceed the amount transferred or received in-bond
under such permit. For example, a person who only manufactures 1,000
cigarettes per month, may receive a maximum of 999 cigarettes in bond
during the month under that permit. Likewise, a person who manufactures
10,000,000 cigarettes a month could receive up to 9,999,999 cigarettes
in bond during the month under that permit. As stated, the quantity of
tobacco products received or transferred in bond under a particular
permit may not exceed the quantity of tobacco products manufactured
under that permit for any given month.
Again, this criteria is intended to ensure that only those persons,
whose primary activity is the manufacture of tobacco products, receive
a manufacturer's permit. We believe that these changes to the
regulations effectively accommodate small producers, while protecting
the timely assessment and collection of the Federal excise tax revenue.
We have also amended regulations in 27 CFR 200.49b to include this new
activity criterion as a basis for rejecting an application for a
permit. We have not amended 27 CFR 200.46, regarding revocation or
suspension of tobacco permits, because we already require compliance
with regulations issued under the IRC.
Importers and Export Warehouse Proprietors
Effective January 1, 2000, the IRC also requires that importers
obtain a permit prior to engaging in the business. See 26 U.S.C. 5712.
We have considered the issue very carefully, and have decided that we
will not impose minimum capacity or activity criteria for importers at
this time. In addition, we will not impose this type of requirement on
export warehouse proprietors. We do not think that either of these
permittees will, or can engage in possible similar misuse of their
permits. However, ATF will consider imposing minimum manufacturing or
activity criteria on importers and export warehouse proprietors if the
need should arise.
Import Restrictions on Previously Exported Tobacco Products,
Cigarette Papers and Tubes
Section 9302 of the Act also added new section 26 U.S.C. 5754,
entitled ``Restriction on importation of previously exported tobacco
products.'' This new section places severe limitations on the
conditions under which previously exported tobacco products, and
cigarette papers and tubes may be imported or brought back into the
United States. This new section states that such products may only be
imported or brought into the United States as provided in section
5704(d).
Section 5704(d) allows previously exported tobacco products and
cigarette papers and tubes to be released from Customs custody, without
payment of tax, for transfer to a manufacturer of tobacco products or
cigarette papers and tubes, or to the proprietor of an export
warehouse. We note that section 5704(d) allows previously exported
tobacco products to be lawfully transferred to any manufacturer of
tobacco products or cigarette papers and tubes, or to any export
warehouse proprietor. The law does not mandate that the previously
exported products return to its original manufacturer or export
warehouse proprietor.
Thus, under section 5754, the only condition under which previously
exported tobacco products and cigarette papers and tubes may be
imported or brought into the United States is by release from Customs
custody to a manufacturer or an export warehouse proprietor as an in-
bond transfer. New section 5754 precludes the importation and tax
payment of such products by an importer. The law is very clear and
leaves no discretion to ATF in this regard. Section 5754 clearly states
that such products may only be imported or brought into the United
States by the method provided in section 5704(d); that is, a transfer,
without payment of tax, to a manufacturer or export warehouse.
Based on the restrictive language of section 5754, ATF has amended
several sections of the regulations in 27 CFR Part 275. Specifically,
new or amended regulations now appear at 27 CFR 275.1, 275.81 and
275.82.
Under amended 27 CFR 275.1, the importation of tobacco products,
and cigarette papers and tubes is generally discussed. In addition, 27
CFR 275.81 distinguishes between tobacco products and cigarette papers
and tubes that are imported, and those that have been previously
exported from the United States and returned to the US. Furthermore, 27
CFR 275.82 discusses
[[Page 71921]]
the new restrictions on the return of exported products.
Penalty and Forfeiture Provisions
In addition to the above restrictions on importations, section 9302
of the Act also imposes a new civil penalty on persons, other than
manufacturers or export warehouse proprietors, who sell, reland or
receive tobacco products or cigarette papers or tubes that have been
labeled or shipped for exportation under Chapter 52 of the IRC. The
civil penalty is the greater of $1,000 or five times the amount of tax
imposed on the product. Thus, a larger penalty is imposed where the
amount of the Federal excise tax on the product is greater than $200.
In addition to the civil penalty, criminal penalties and forfeiture of
the product and any vessel, vehicle or aircraft involved in relanding
or removing such product may be imposed. See 26 U.S.C. 5761(c).
Exemptions
The civil penalties do not apply to a manufacturer or export
warehouse proprietor qualified under Chapter 52 of the IRC. See 26
U.S.C. 5704(b), 5704(d).
Application of Effective Dates
Section 9302(i) of the Act provides that the amendments to the IRC
apply to ``articles removed'' after December 31, 1999. The Act amends
the term ``removed'' to mean: ``the removal of tobacco products or
cigarette papers or tubes from the factory or from internal revenue
bond under section 5704, as the Secretary shall by regulation
prescribe, or release from customs custody, and shall also include the
smuggling or other unlawful importation of such article into the United
States.''
The new civil and forfeiture penalty in section 5761(c) applies
only to tobacco products, and cigarette papers and tubes bearing export
markings that have been ``removed'' on or after January 1, 2000.
Accordingly, section 5761(c) applies to these products that are marked
for export and removed from a manufacturer or export warehouse
proprietor, released from Customs custody, or smuggled into the United
States on or after January 1, 2000.
Articles that are removed on or before December 31, 1999 are not
subject to the new penalty in section 5761(c). Tobacco products in
packages bearing export marks that were lawfully removed from Customs
custody and entered into the United States prior to January 1, 2000 are
lawful products and not subject to the civil penalty under section
5761(c), or other criminal provisions of Chapter 52 of the IRC. These
new penalty provisions have been added to 27 CFR 275.83.
ATF has carefully considered ways to enforce section 5761(c), since
the domestic market will contain tobacco products that have been
lawfully removed on or before December 31, 1999, and products marked
for export that have been unlawfully introduced into the domestic
market after December 31, 1999 and subject to the civil penalty. To
differentiate between the products that have been lawfully removed and
unlawfully removed, we considered whether or not to change the export
marking requirements under 27 CFR 290.185 for products manufactured
after December 31, 1999. We have initially rejected this possibility,
since it would impose major burdens on tobacco manufacturers. ATF has
decided that voluntary commercial marks placed on packages by the
tobacco industry will enable us to distinguish between these products.
However, we will, under section 5704(b) authority, change the export
marking on products manufactured after December 31, 1999 to
differentiate between products removed if future investigations
disclose the need to do so.
Repackaging
As noted, Congress enacted a new section 5754 in the IRC. Under
this section, tobacco products and cigarette papers and tubes
previously exported from the United States may only be imported or
brought into the United States as provided in section 5704(d). Section
5704(d) provides that tobacco products and cigarette papers and tubes
exported and returned may be released from customs custody, without
payment of that part of the duty attributable to the internal revenue
tax, for delivery to a manufacturer of tobacco products or cigarette
papers and tubes or to an export warehouse proprietor. Except for a
qualified manufacturer of tobacco products or cigarette papers and
tubes and an export warehouse proprietor, section 5761(c) imposes
penalties for the selling, relanding, and receiving of tobacco products
that are labeled or shipped for export. In effect, section 5761(c)
prohibits the sale of relanded tobacco product bearing export markings.
Although manufacturers and export warehouse proprietors are
authorized to receive relanded tobacco products or cigarette papers or
tubes from customs custody without payment of the Federal excise tax,
there are limitations on what manufacturers and export warehouse
proprietors may do with such product. As discussed below, the products
may be destroyed, re-exported, or in the case of a manufacturer, the
product may be repackaged and removed for sale in the domestic market.
Export Warehouses
Section 5702 defines ``export warehouse'' to mean ``a bonded
internal revenue warehouse for the storage of tobacco products and
cigarette papers and tubes, upon which the internal revenue tax has not
been paid, for subsequent shipment to a foreign country, Puerto Rico,
the Virgin Islands, or a possession of the United States, or for
consumption beyond the jurisdiction of the internal revenue laws of the
United States.'' An export warehouse proprietor is one who owns an
export warehouse. Export warehouse proprietors are authorized to store
non-taxpaid tobacco products, and cigarette papers and tubes for
subsequent exportation. Under the IRC, an export warehouse proprietor
is not authorized to pay excise tax on tobacco products, including
relanded tobacco products for distribution into the domestic U.S.
market. Export warehouses are specifically established under the law to
facilitate the exportation of tobacco products without payment of the
excise tax. Thus, by definition, an export warehouse can only receive
tobacco products in bond and export them or return them to a
manufacturer. Because there is no authority for the export warehouse
proprietor to pay the excise tax and distribute tobacco products onto
the domestic U.S. market, an export warehouse proprietor may lawfully
receive relanded tobacco products, transfer relanded tobacco products
to a qualified manufacturer, or re-export the relanded tobacco
products. Export warehouse proprietors may also destroy these relanded
tobacco products.
Manufacturers
Manufacturers are authorized under the IRC to pay excise tax on and
distribute tobacco products into the domestic market. See 26 U.S.C.
5703. However, the IRC also requires that before removal from a
manufacturer's factory, tobacco products must be put up in packages and
bear the marks, labels, and notices required by the Secretary.
As stated above, the Secretary has the general authority to
prescribe packaging and marking requirements for tobacco products. See
26 U.S.C. 5723(a) and (b). Under this authority, ATF has prescribed
regulations under 27 CFR 290.185 which require that products removed
for exportation exempt from taxation must bear export markings. Again,
such markings include the words, ``Tax-exempt. For use outside of
[[Page 71922]]
U.S.'' or ``U.S. Tax-exempt. For use outside U.S.'' These export
markings signify that the product is not subject to Federal taxes and
that it is not intended for distribution within the United States. We
rely on these markings to identify these products as a tax-exempt
export for enforcement purposes. In addition, ATF has prescribed
regulations under 27 CFR 290.222 which require that tobacco products
and cigarette papers and tubes on which tax has been paid and a
drawback claim has been made must have a label affixed reading ``For
Export With Drawback of Tax.''
However, previously exported products that are relanded in the
United States also bear the export markings required under Sec. 290.185
and Sec. 290.222 and may be intended for distribution in the domestic
market. Because we cannot tell if a particular product on the market
has been lawfully taxpaid and removed from Customs custody, or if it
was smuggled into the U.S., the efficacy of the export marking
requirements is severely reduced if these products are allowed in the
domestic market. ATF has concluded that since relanded tobacco products
are marked in accordance with the tobacco export regulations at 27 CFR
290.185 and bear a statement that says ``Tax-exempt. For use outside of
U.S.'' or ``U.S. Tax-exempt. For use outside U.S.'' or in accordance
with 290.222 and bear a statement that says ``For Export With Drawback
of Tax,'' they are not properly marked for distribution on the domestic
U.S. market. Further, if products with export markings were allowed on
the domestic market, this practice would hinder ATF enforcement of the
IRC and pose a jeopardy of the revenue. Our goal is to protect the
revenue, and to determine whether the Federal excise tax on a relanded
product has been paid. ATF has considered various options for removing
these export markings and bringing relanded products into compliance
with the domestic marking and labeling requirements. We have considered
allowing such products to be over-stamped, allowing the obliteration of
the tax-exempt marking, or allowing stickers to be placed over the
markings. However these options of over-stamping, obliteration or
stickers would negate the value of these markings as a tax enforcement
tool. Over-stamping, obliteration, or placing stickers over the tax-
exempt notice would not necessarily mean that the Federal excise tax
had been paid on the relanded product. Any person could obtain product
that had not been Federally taxpaid, and place stickers over the ``tax
exempt'' notice on packages and distribute them in the domestic market.
After careful consideration of the issue, we have concluded that a
manufacturer who distributes relanded tobacco products onto the
domestic market, must remove the product from its original packages
(bearing export markings) and repackage them into new packages with the
proper mark and notice requirements for domestic U.S. distribution as
prescribed in 27 CFR part 270. ATF has determined that in order to
protect the Federal excise tax revenue, it is essential to require the
repackaging of these reimported products before they are introduced in
domestic commerce.
Thus, under 26 U.S.C. 5761(c), products labeled for export may not
be sold on the domestic U.S. market. However, manufacturers are
eligible to receive relanded tobacco products, and cigarette papers and
tubes and sell them on the domestic market if they are completely
repackaged under the laws and regulations for products not intended for
exportation. Accordingly, amended 27 CFR 275.82(b) prescribes
requirements for repackaging under these circumstances. Also,
regulations have been added at 27 CFR 270.213 which notify
manufacturers that tobacco products marked for export are not eligible
for distribution on the domestic market, and the need to repackage such
products.
Finally, similar to an export warehouse proprietor, a manufacturer
may also transfer the tobacco products to another manufacturer or
export warehouse proprietor, re-export the relanded tobacco products,
or destroy these relanded tobacco products.
Miscellaneous Changes
Form Numbers
In addition to the changes to the regulations necessitated by
Public Law 105-33, ATF is making several miscellaneous administrative
changes that update the references to ATF Form numbers within the
regulations. The regulations at 27 CFR 290.61a, 290.142, 290.198
through 290.208, 290.210, 290.213, and 290.256 through 290.267 are also
amended to change all references from the obsolete form number ATF F
2149/2150, to the new form number ATF F 5200.14. The regulations in 27
CFR 290.152 through 290.154 are also amended to change all references
from the obsolete form number: ATF F 2635, to the new form number: ATF
F 5620.8. The regulations in 27 CFR 290.62 are amended to delete
obsolete references to a Customs form and regulatory citation.
Record Retention of ATF Forms
Minor changes are being made in the regulations to reflect the
correct number of years that ATF forms numbers 5700.14 and 5620.8 must
be retained. The regulations are amended to change the records
retention period from 2 years to 3 years.
Manufacturer's Record
The record of a manufacturer of tobacco products at 27 CFR 270.183
is amended to include the term ``roll-your-own tobacco'' and to include
a record of transfers to, and receipts from foreign trade zones.
Export Warehouse Records
The records required to be maintained by an export warehouse
proprietor at 27 CFR 290.142 have been amended to include several new
items of information. Proprietors will now be required to indicate the
manufacturer and brand name of products: received, removed,
transferred, destroyed, lost, or returned to manufacturers or customs
bonded warehouses. In addition, their records must also include the
number of containers and unit type (e.g., cartons, cases).
Definitions
To clarify the regulations, several definitions are being added to
the ``Meaning of terms'' sections in 27 CFR 275.11 and 290.11. Section
275.11 is amended by adding definitions for the terms ``export
warehouse,'' ``export warehouse proprietor,'' ``manufacturer of tobacco
products,'' ``manufacturer of cigarette papers and tubes,'' and
``relanding,'' Section 290.11 is amended by adding a definition for
``zone restricted status.''
Regulatory Flexibility Act
Because no notice of proposed rulemaking is required, the
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do
not apply. Moreover, any revenue effects of this rulemaking on small
businesses flow directly from the underlying statute. Likewise, any
secondary or incidental effects, and any reporting, recordkeeping, or
other compliance burdens flow directly from the statute. Pursuant to 26
U.S.C. 7805(f), this temporary regulation will be submitted to the
Chief Counsel for Advocacy of the Small Business Administration for
comment on its impact on small business.
[[Page 71923]]
Executive Order 12866
It has been determined that this temporary rule is not a
significant regulatory action as defined by Executive Order 12866
because any economic effects flow directly from the underlying statute
and not from this temporary rule. Therefore, a regulatory assessment is
not required.
Paperwork Reduction Act
This regulation is being issued without prior notice and public
procedure pursuant to the Administrative Procedure Act (5 U.S.C. 553).
For this reason, the collection of information contained in this
regulation has been reviewed under the requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3507(j)), and pending receipt and
evaluation of public comments, approved by the Office of Management and
Budget (OMB) under control numbers 1512-0367 and 1512-0358. Any agency
may not conduct or sponsor, and a person is not required to respond to,
a collection of information unless it displays a valid control number
assigned by OMB.
The collection of information in this regulation is found in 27 CFR
270.183 and 290.142. The collection of this information is required to
verify that all tobacco products can be accounted for, thus ensuring
that the tax revenue is protected. Without these recordkeeping
requirements, no recording of the data elements pertaining to these
operations would be prescribed.
For further information concerning this collection of information,
and where to submit comments on the collection of information, refer to
the preamble of the cross-referenced notice of proposed rulemaking
published in the proposed rules section of this Federal Register.
Administrative Procedure Act
Because this document merely implements sections of the law which
were enacted on August 5, 1997, and because immediate guidance is
necessary to implement the provisions of the law, it is found to be
contrary to the public interest and impracticable to issue this
Treasury decision with notice and public procedure under 5 U.S.C.
553(b), or subject to the effective date limitation in section 553(d).
Drafting Information
The principal authors of this document are Ms. Teri Byers and Mr.
Daniel Hiland, of the Regulations Division, Bureau of Alcohol, Tobacco
and Firearms. However, other personnel within ATF and the Treasury
Department also participated in developing this document.
List of Subjects
27 CFR Part 200
Administrative practice and procedure, Authority delegations.
27 CFR Part 270
Administrative practice and procedure, Authority delegations,
Cigarette papers and tubes, Claims, Electronic fund transfer, Excise
taxes, Labeling, Packaging and containers, Penalties, Reporting
requirements, Seizures and forfeitures, Surety bonds, Tobacco products.
27 CFR Part 275
Administrative practice and procedure, Authority delegations,
Cigarette papers and tubes, Claims, Customs duties and inspection,
Electronic fund transfer, Excise taxes, Imports, Labeling, Packaging
and containers, Penalties, Reporting requirements, Seizures and
forfeitures, Surety bonds, Tobacco products, U.S. possessions,
Warehouses.
27 CFR Part 290
Administrative practice and procedure, Aircraft, Authority
delegations, Cigarette papers and tubes, Claims, Customs duties and
inspection, Excise taxes, Exports, Foreign trade zones, Labeling,
Packaging and containers, Penalties, Surety bonds, Tobacco products,
Vessels, Warehouses.
Authority and Issuance
Accordingly, title 27, Code of Federal Regulations is amended as
follows:
PART 200--RULES OF PRACTICE IN PERMIT PROCEEDINGS
Paragraph 1. The authority citation for part 200 continues to read
as follows:
Authority: 26 U.S.C. 7805, 27 U.S.C. 204.
Par 2. Section 200.49b is amended by redesignating paragraph (b) as
paragraph (c) and by adding a new paragraph (b) to read as follows:
Sec. 200.49b Applications for tobacco permits.
* * * * *
(b) The applicant for a permit does not meet the minimum
manufacturing and activity requirements in 27 CFR 270.61; or
* * * * *
PART 270--MANUFACTURE OF TOBACCO PRODUCTS
Par 3. The authority citation for part 270 continues to read as
follows:
Authority: 26 U.S.C. 5142, 5143, 5146, 5701, 5703-5705, 5711-
5713, 5721-5723, 5731, 5741, 5751, 5753, 5761-5763, 6061, 6065,
6109, 6151, 6301, 6302, 6311, 6313, 6402, 6404, 6423, 6676, 6806,
7011, 7212, 7325, 7342, 7502, 7503, 7606, 7805, 31 U.S.C. 9301,
9303, 9304, 9306.
Par. 4. Section 270.61 is revised to read as follows:
Sec. 270.61 Qualification--General
(a) Who must qualify. Every person who produces tobacco products
except for his or her own personal consumption or use, shall qualify as
a manufacturer of tobacco products in accordance with the provisions of
this part.
(b) Minimum manufacturing and activity requirements. A permit to
manufacture tobacco products will only be granted to those persons
whose principal business activity under such permit will be the
original manufacture of tobacco products. A permit will not be granted
to any person whose principal activity under such permit will be to
receive or transfer tobacco products in bond. As a minimum activity
requirement, in order to qualify for a permit, the quantity of tobacco
products manufactured under the permit must exceed the quantity to be
transferred or received in bond under the permit. For the purposes of
this section, repackaging or relabeling activities alone do not qualify
as a manufacturing activity.
Par. 5. Section 270.183 is revised to read as follows:
Sec. 270.183 Record of tobacco products.
The record of a manufacturer of tobacco products shall show the
date and total quantities of all tobacco products, by kind (small
cigars-large cigars; small cigarettes-large cigarettes; chewing
tobacco-snuff; pipe tobacco; roll-your-own tobacco):
(a) Manufactured;
(b) Received in bond by--
(1) Transfer from other factories,
(2) Release from customs custody,
(3) Transfer from export warehouses, and
(4) Transfer from foreign trade zone;
(c) Received by return to bond;
(d) Disclosed as an overage by inventory;
(e) Removed subject to tax (itemize large cigars by sale price in
accordance with Sec. 270.22);
(f) Removed, in bond, for--
(1) Export,
(2) Transfer to export warehouses,
(3) Transfer to other factories,
(4) Transfer to a foreign trade zone
(5) Use of the United States, and
(6) Experimental purposes off factory premises;
[[Page 71924]]
(g) Otherwise disposed of, without determination of tax, by--
(1) Consumption by employees on factory premises,
(2) Consumption by employees off factory premises, together with
the number of employees to whom furnished,
(3) Use for experimental purposes on factory premises,
(4) Loss,
(5) Destruction, and
(6) Reduction to materials;
(h) Disclosed as a shortage by inventory; and
(i) On which the tax has been determined and which are--
(1) Received, and
(2) Disposed of.
(Approved by the Office of Management and Budget under control
number 1512-0358)
Par. 6. Section 270.213 is added to read as follows:
Sec. 270.213 Tobacco products labeled for export.
Tobacco products labeled for export are ineligible for removal from
the factory and distribution into the domestic U.S. market. Such
products may only be sold, transferred or delivered onto the domestic
U.S. market by a manufacturer of tobacco products after repackaging of
the product. For the purposes of this section, ``repackaging'' shall
mean the removal of the tobacco product from its original package
bearing the export marks and placement of the product in a new package.
The new packages, marks and notices must conform to the requirements of
this subpart.
Par. 7. Section 270.233 is amended by adding a new sentence to the
end of the section to read as follows:
Sec. 270.233 Transfer in bond.
* * * Tobacco products are not eligible for transfer in bond to a
manufacturer of tobacco products or to an export warehouse unless they
bear all required marks, labels, or notices.
PART 275--IMPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND
TUBES
Par. 8. The authority citation for part 275 is revised to read as
follows:
Authority: 26 U.S.C. 5701, 5703, 5704, 5705, 5708, 5722, 5723,
5741, 5754, 5761, 5762, 5763, 6301, 6302, 6313, 6404, 7101, 7212,
7342, 7606, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.
Par. 9. Section 275.1 is revised to read as follows:
Sec. 275.1 Importation of tobacco products and cigarette papers and
tubes.
This part contains regulations relating to tobacco products and
cigarette papers and tubes imported into the United States from a
foreign country or brought into the United States from Puerto Rico, the
Virgin Islands, or a possession of the United States; the removal of
tobacco products from a customs bonded manufacturing warehouse, class
6; restrictions on the importation of previously exported tobacco
products and cigarette papers and tubes; and the release of tobacco
products and cigarette papers and tubes from customs custody, without
payment of internal revenue tax or customs duty attributable to the
internal revenue tax.
Par. 10. Section 275.11 is amended by adding in alphabetical order,
definitions for the terms ``Export warehouse,'' ``Export warehouse
proprietor,'' ``Manufacturer of tobacco products,'' ``Manufacturer of
cigarette papers and tubes,'' and ``Relanding'' to read as follows:
Sec. 275.11 Meaning of terms.
* * * * *
Export warehouse. A bonded internal revenue warehouse for the
storage of tobacco products and cigarette papers and tubes, upon which
the internal revenue tax has not been paid, for subsequent shipment to
a foreign country, Puerto Rico, the Virgin Islands, or a possession of
the United States, or for consumption beyond the jurisdiction of the
internal revenue laws of the United States.
Export warehouse proprietor. Any person who operates an export
warehouse.
Manufacturer of tobacco products. Any person who manufactures
cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own
tobacco. A manufacturer of tobacco products does not include:
(1) A person who produces cigars, cigarettes, smokeless tobacco,
pipe tobacco, or roll-your-own tobacco solely for the person's own
personal consumption or use; or
(2) A proprietor of a Customs bonded manufacturing warehouse with
respect to the operation of such warehouse.
Manufacturer of cigarette papers and tubes. Any person who makes up
cigarette papers or cigarette tubes, except for personal use or
consumption.
Relanding. Any tobacco products, cigarette papers or tubes, which
have been labeled or shipped for exportation (including to Puerto Rico)
as prescribed in this chapter, previously exported and returned within
the jurisdiction of the United States. This term does not apply to any
tobacco products, cigarette papers or tubes that are placed in
appropriately marked receptacles by travelers or passengers prior to
making their declaration to a U.S. Customs officer upon arrival in the
United States.
* * * * *
Par. 11. Paragraph (a) of Sec. 275.81 is revised to read as
follows:
Sec. 275.81 Taxpayment.
(a) General. The provisions of this section apply to tobacco
products, cigarette papers, and cigarette tubes upon which internal
revenue tax is payable, and which are imported into the United States
from a foreign country or are brought into the United States from
Puerto Rico, the Virgin Islands, or a possession of the United States.
For provisions relating to the importation of previously exported
tobacco products and cigarette papers and tubes, see section 275.82.
* * * * *
Par. 12. Add Sec. 275.82 to subpart F after the undesignated center
heading ``Release from Customs Custody * * *'' to read as follows:
Sec. 275.82 Return of exported products.
(a) The provisions of this section apply to articles imported or
brought into the United States after December 31, 1999. After such
date, the importation or bringing in of tobacco products and cigarette
papers and tubes that were previously exported from the United States
is restricted. Such products may only be imported or brought into the
United States by release from customs custody for delivery to a
manufacturer of tobacco products or cigarette papers or tubes, or to
the proprietor of an export warehouse. These products are transferred
in bond and are released from customs custody without payment of that
part of the duty attributable to internal revenue tax.
(b) The products described in paragraph (a) of this section may
only be sold, transferred, or delivered onto the domestic U.S. market
by a manufacturer of tobacco products after repackaging of the product.
For the purposes of this subsection, ``repackaging'' shall mean the
removal of the tobacco product from its original package bearing the
export marks and placement of the product in a new package. The new
packages, marks and notices must conform to the requirements of 27 CFR
part 270.
Par. 13. Add Sec. 275.83 to subpart F after the undesignated center
heading ``Release from Customs Custody of * * *'' to read as follows:
[[Page 71925]]
Sec. 275.83 Penalties and forfeiture for relanded products.
Except for the return of exported products that are specifically
authorized under Sec. 275.82:
(a) Every person who sells, relands, or receives within the
jurisdiction of the United States any tobacco products or cigarette
papers or tubes which have been labeled or shipped for exportation;
(b) Every person who sells or receives such relanded tobacco
products or cigarette papers or tubes; and,
(c) Every person who aids or abets in such selling, relanding, or
receiving, shall, in addition to the tax and any other penalty provided
for in Title 26 U.S.C., be liable for a penalty equal to the greater of
$1,000 or 5 times the amount of the tax imposed by Title 26 U.S.C. All
tobacco products and cigarette papers and tubes relanded within the
jurisdiction of the United States, and all vessels, vehicles and
aircraft used in such relanding or in removing such products, papers,
and tubes from the place where relanded, shall be forfeited to the
United States. This section shall apply only to tobacco products,
cigarette papers and tubes removed after December 31, 1999.
PART 290--EXPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND
TUBES, WITHOUT PAYMENT OF TAX, OR WITH DRAWBACK OF TAX
Par. 14. The authority citation for part 290 is revised to read as
follows:
Authority: 26 U.S.C. 5142, 5143, 5146, 5701, 5703-5705, 5711-
5713, 5721-5723, 5731, 5741, 5751, 5754, 6061, 6065, 6151, 6402,
6404, 6806, 7011, 7212, 7342, 7606, 7805; 31 U.S.C. 9301, 9303,
9304, 9306.
Par. 15. Section 290.11 is amended by adding, in alphabetical
order, the definition of ``Zone restricted status'' to read as follows:
Sec. 290.11 Meaning of terms.
* * * * *
Zone restricted status. Tobacco products, cigarettes papers and
cigarette tubes which have been taken into a foreign trade zone from
United States Customs territory for the sole purpose of exportation or
storage until exported.
* * * * *
Par. 16. Section 290.61 is revised to read as follows:
Sec. 290.61 Removals, withdrawals, and shipments authorized.
(a) Tobacco products, and cigarette papers and tubes may be removed
from a factory or an export warehouse, and cigars may be withdrawn from
a customs warehouse, without payment of tax, for direct exportation or
for delivery for subsequent exportation, in accordance with the
provisions of this part.
(b) Tobacco products and cigarette papers and tubes are not
eligible for removal or transfer in bond under this part unless they
bear the marks, labels, or notices required by this part.
Sec. 290.61a [Amended]
Par. 17. Section 290.61a is amended by removing the reference
``Form 2149 or 2150'' and adding in its place the reference ``Form
5200.14''.
Par. 18. In Sec. 290.62 the fifth sentence and the seventh sentence
of the section are amended to read as follows:
Sec. 290.62 Restriction on deliveries of tobacco products and
cigarette papers and tubes to vessels and aircraft, as supplies.
* * * For this purpose, the customs authorities may require the
master of the receiving vessel to submit for customs approval, prior to
lading, customs documentation for permission to lade the articles. * *
* Deliveries may be made to aircraft clearing through customs en route
to a place or places beyond the jurisdiction of the internal revenue
laws of the United States, and to aircraft operating on a regular
schedule between U.S. customs areas as defined in the Air Commerce
Regulations (19 CFR part 122).
* * * * *
Par. 19. Section 290.142 is revised to read as follows:
Sec. 290.142 Records.
Every export warehouse proprietor must keep in such warehouse
complete and concise records, containing the:
(a) Number of containers;
(b) Unit type (e.g., cartons, cases);
(c) Kind of articles (e.g., small cigarettes);
(d) Name of manufacturer and brand; and,
(e) Quantity of tobacco products, cigarette papers and tubes
received, removed, transferred, destroyed, lost or returned to
manufacturers or to customs warehouse proprietors. In addition to such
records, the export warehouse proprietor shall retain a copy of each
Form 5200.14 received from a manufacturer, another export warehouse
proprietor, or customs warehouse proprietor, from whom tobacco products
and cigarette papers and tubes are received and a copy of each Form
5200.14 covering the tobacco products, and cigarette papers and tubes
removed from the warehouse. The entries for each day in the records
maintained or kept under this section shall be made by the close of the
business day following that on which the transactions occur. No
particular form of records is prescribed, but the information required
shall be readily ascertainable. The records and copies of Form 5200.14
shall be retained for 3 years following the close of the calendar year
in which the shipments were received or removed and shall be made
available for inspection by any ATF officer upon request.
(Approved by the Office of Management and Budget under control
number 1512-0367)
Sec. 290.143 [Amended]
Par. 20. Section 290.143(b) is amended by removing the phrase ``2
years'' and by adding in its place the phrase ``3 years''.
Sec. 290.147 [Amended]
Par. 21. Section 290.147 is amended by removing the phrase ``2
years'' and by adding in its place the phrase ``3 years''.
Sec. 290.152 [Amended]
Par. 22. Section 290.152 is amended by removing the reference
``Form 2635'' and add in its place the reference ``Form 5620.8''.
Section 290.152 is also amended by removing the words ``two years'' and
adding in its place the phrase ``3 years''.
Sec. 290.153 [Amended]
Par. 23. Section 290.153 is amended by removing the reference to
``Form 2635 (5620.8)'' and add in its place the reference ``Form
5620.8''.
Sec. 290.154 [Amended]
Par. 24. Section 290.154 is amended by removing the reference to
``Form 2635 (5620.8)'' and add in its place the reference ``Form
5620.8''. Section 290.154 is also amended by removing the phrase ``2
years'' and by adding in its place the phrase ``3 years''.
Par. 25. Section 290.181 is revised to read as follows:
Sec. 290.181 Packages.
All tobacco products and cigarette papers and tubes will, before
removal or transfer under this subpart, be put up by the manufacturer
in packages which shall bear the label or notice, tax classification,
and mark, as required by this subpart. For purposes of this subpart,
the package does not include the cellophane wrapping material.
Sec. 290.198 [Amended]
Par. 26. Section 290.198 is amended by removing the references
``Form 2149'' and ``Form 2150'' and adding in their place the reference
``Form 5200.14''.
[[Page 71926]]
Sec. 290.199 [Amended]
Par. 27. Section 290.199 is amended by removing the reference
``Form 2149 or Form 2150'' and adding in their place the reference
``Form 5200.14''. This section is also amended by removing the words
``two years'' and adding in their place the words ``3 years''.
Sec. 290.200 [Amended]
Par. 28. Section 290.200 is amended by removing the reference to
``Form 2149 or 2150, as the case may be,'' and adding in its place the
reference ``Form 5200.14''.
Sec. 290.201 [Amended]
Par. 29. Section 290.201 is amended by removing the reference
``Form 2150'' and adding in its place the reference ``Form 5200.14''.
This section is also amended by removing the words ``two years'' and
adding in their place the words ``3 years''.
Secs. 290.202 through 290.204 [Amended]
Par. 30. Sections 290.202 through 290.204 are amended by removing
the reference ``Form 2149 or Form 2150'' and adding in its place the
reference ``Form 5200.14''.
Sec. 290.205 [Amended]
Par. 31. Section 290.205 is amended by removing the reference
``Form 2149/2150 (5200.14)'' wherever it appears in paragraphs (a)(1)
and (d) and adding in its place the reference ``Form 5200.14''.
Sec. 290.206 [Amended]
Par. 32. Section 290.206 is amended by removing the reference
``Form 2149 or 2150'' and adding in its place the reference ``Form
5200.14''.
Secs. 290.207 through 290.208 [Amended]
Par. 33. Sections 290.207 through 206.208 are amended by removing
the reference ``Form 2149 or 2150'' and adding in its place the
reference ``Form 5200.14''.
Sec. 290.210 [Amended]
Par. 34. Section 290.210 is amended by removing the reference
``Form 2149 or 2150'' and adding in its place the reference ``Form
5200.14''.
Sec. 290.213 [Amended]
Par. 35. Section 290.213 is amended by removing the reference
``Form 2150'' and adding in its place the reference ``Form 5200.14''.
Sec. 290.256 [Amended]
Par. 36. Section 290.256 is amended by removing the reference
``Form 2149'' and adding in its place ``Form 5200.14''.
Sec. 290.257 [Amended]
Par. 37. Section 290.257 is amended by removing the reference
``Form 2149'' and adding in its place ``Form 5200.14''. This section is
also amended by removing the words ``two years'' and adding in their
place the words ``3 years''.
Secs. 290.258 through 290.265 [Amended]
Par. 38. Sections 290.258 through 290.265 are amended by removing
the reference ``Form 2149'' each place it appears and adding in its
place the reference ``Form 5200.14''.
Sec. 290.266 [Amended]
Par. 39. Section 290.266 is amended by removing the reference
``Form 2150'' and adding in its place ``Form 5200.14''. This section is
also amended by removing the words ``two years'' and adding in their
place the words ``3 years''.
Sec. 290.267 [Amended]
Par. 40. Section 290.267 is amended by removing the reference
``Form 2149'' and adding in its place ``Form 5200.14''. This section is
also amended by removing the words ``two years'' and adding in their
place the words ``3 years''.
Signed: October 12, 1999.
John W. Magaw,
Director.
Approved: November 17, 1999.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 99-32598Filed 12-21-99; 8:45 am]
BILLING CODE 4810-31-U

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